Exempt Employee Pay Policy

Exempt Employee Pay Policy

(Including Acceptable and Unacceptable Pay Reductions)

[Note: Be sure to modify this sample policy to reflect circumstances unique to your organization. Comments are provided in brackets to assist you with this process.]

Policy

In accordance with the Fair Labor Standards Act regulations, exempt employees who are required to be paid on a salary basis may not have their pay reduced for variations in the quantity or quality of work performed. Employees who feel their pay has been improperly reduced should report this immediately following the procedures specified below.

Provisions Mandated by the Salary Basis Rules

1. Exempt employees normally must receive their full salary for any week in which they perform any work, without regard to the number of days or hours worked. However, exempt employees need not be paid for any workweek in which they perform NO work at all for the organization.

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